Dwindling Herds, Overseas Demand Drive Up Beef Prices

For anyone who loves a good steak, a juicy burger or a nice Sunday roast, these are anxious times.

Prices for beef, which have been climbing for months, hit a record high in December — an average of $5/lb. — and analysts predict they could climb 5-8% higher this year.

Beef prices are soaring for a number of reasons. Producers, who struggled with high feed costs and diminishing profits, began shrinking their herds roughly five years ago. Since then, demand from overseas markets has shot up — a record 11% of American beef went overseas last year, up from 8.7% in 2010.